USD/CHF is expected to trade with bearish bias as the key resistance is at 0.9765. The pair remains under pressure below its horizontal resistance at 0.9765, and it is also capped by its falling 50-period moving average. The technical indicator such as the relative strength index is mixed to bearish, calling for caution. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
Trading Recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9695. A break of this target will move the pair further downwards to 0.6645. The pivot point stands at 0.9765. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.98 and the second target at 0.9845.
Resistance levels: 0.9800, 0.9845, 0.9890
Support levels: 0.9695, 0.9645, 0.9600
The material has been provided by InstaForex Company - www.instaforex.com